How are AX collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the AX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.50%), the computed maximum profit is $277.50 per contract and the computed maximum loss is -$472.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AX collar?

The breakeven for the AX collar priced on this page is roughly $97.23 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AX market-implied 1-standard-deviation expected move is approximately 8.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AX implied volatility affect this collar?

AX ATM IV is at 29.50% with IV rank near 11.37%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

AX Collar Strategy

AX (Axos Financial, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Founded in Las Vegas, Nevada, in 1999, Axos Financial, Inc. is a U.S.-based financial institution that delivers a comprehensive array of banking services to both individual consumers and businesses. The company operates through two primary divisions: its core Banking Business and its Securities Business. For deposits, Axos provides a broad spectrum of options including checking, savings, demand, money market, and time deposit accounts, alongside specialized products such as zero balance and insured cash sweep accounts. Its diverse lending portfolio encompasses various mortgage types, such as single-family, multi-family, and commercial real estate-backed loans. They also extend commercial and industrial loans, comprising non-real estate, asset-backed, term loans, and lines of credit. Consumer lending encompasses automobile loans, fixed-rate unsecured loans, and unique offerings such as structured settlements, Small Business Administration (SBA) loans, and securities-backed financing.

AX (Axos Financial, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.47B, a trailing P/E of 11.44, a beta of 1.25 versus the broader market, a 52-week range of 74.89-101.92, average daily share volume of 412K, a public-listing history dating back to 2005, approximately 2K full-time employees. These structural characteristics shape how AX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.25 places AX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.44 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a collar on AX?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

Current AX snapshot

As of June 30, 2026, spot at $97.55, ATM IV 29.50%, IV rank 11.37%, expected move 8.46%. The collar on AX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this collar structure on AX specifically: IV regime affects collar pricing on both sides; compressed AX IV at 29.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.46% (roughly $8.25 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AX should anchor to the underlying notional of $97.55 per share and to the trader's directional view on AX stock.

AX collar setup

The AX collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AX near $97.55, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AX chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$97.55	long
Sell 1	Call	$100.00	$1.35
Buy 1	Put	$92.50	$1.03

AX collar risk and reward

Net Premium / Debit: -$9,722.50
Max Profit (per contract): $277.50
Max Loss (per contract): -$472.50
Breakeven(s): $97.23
Risk / Reward Ratio: 0.587

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

AX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$472.50
$21.58	-77.9%	-$472.50
$43.15	-55.8%	-$472.50
$64.71	-33.7%	-$472.50
$86.28	-11.6%	-$472.50
$107.85	+10.6%	+$277.50
$129.42	+32.7%	+$277.50
$150.98	+54.8%	+$277.50
$172.55	+76.9%	+$277.50
$194.12	+99.0%	+$277.50

When traders use collar on AX

Collars on AX hedge an existing long AX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

AX thesis for this collar

The market-implied 1-standard-deviation range for AX extends from approximately $89.30 on the downside to $105.80 on the upside. A AX collar hedges an existing long AX position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current AX IV rank near 11.37% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AX at 29.50%. As a Financial Services name, AX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AX-specific events.

AX collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AX alongside the broader basket even when AX-specific fundamentals are unchanged. Always rebuild the position from current AX chain quotes before placing a trade.

Frequently asked questions

What is a collar on AX?: A collar on AX is the collar strategy applied to AX (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With AX stock trading near $97.55, the strikes shown on this page are snapped to the nearest listed AX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AX collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the AX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.50%), the computed maximum profit is $277.50 per contract and the computed maximum loss is -$472.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AX collar?: The breakeven for the AX collar priced on this page is roughly $97.23 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AX market-implied 1-standard-deviation expected move is approximately 8.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AX?: Collars on AX hedge an existing long AX stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current AX implied volatility affect this collar?: AX ATM IV is at 29.50% with IV rank near 11.37%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.